New crypto traders in Nigeria often ask the question – what are spot and futures trading, what is the difference between them when one or another trading method is applied. We will try to explain to you the features of both spot and options and also give examples of cryptocurrency exchanges that support spot and futures trading.

Although spot trading is recommended for novice traders as a simpler and clearer option, the market for cryptocurrency derivatives is also actively developing. In just a few years, it has grown to a big market, with many spot exchanges launching a section or even a separate platform with futures. As a result, trading volumes in these areas are increasing rapidly.

The differences between futures and spot trading

In the case of cryptocurrencies, spot trading is really the easiest action to start with. It is essentially buying a cryptocurrency (say, Bitcoin) and holding it in your account until the price rises for a profitable sale. The exchange takes a commission for each transaction, the amount of which usually depends on which “side” of the market the user belongs to in this case:

Makers. The commission for them is low or zero and on some exchanges, they get a so-called rebate.

Market makers create limit orders to sell or buy, specifying the desired price of the operation. Thus, they form a book of orders, that is, they “make the market. Hence, there are more loyal conditions for them.
Takers. They create market orders without specifying a buy or sell price, thereby closing the existing limit orders.

continue reading here: https://altcoin.ng/what-is-spot-and-futures-trading-in-cryptocurrency-exchanges-examples-of-derivatives-and-spot-exchanges/

Earn daily using binary options automated trading bots for deriv to trade

altcoinng:
New crypto traders in Nigeria often ask the question – what are spot and futures trading, what is the difference between them when one or another trading method is applied. We will try to explain to you the features of both spot and options and also give examples of cryptocurrency exchanges that support spot and futures trading.

Although spot trading is recommended for novice traders as a simpler and clearer option, the market for cryptocurrency derivatives is also actively developing. In just a few years, it has grown to a big market, with many spot exchanges launching a section or even a separate platform with futures. As a result, trading volumes in these areas are increasing rapidly.

The differences between futures and spot trading

In the case of cryptocurrencies, spot trading is really the easiest action to start with. It is essentially buying a cryptocurrency (say, Bitcoin) and holding it in your account until the price rises for a profitable sale. The exchange takes a commission for each transaction, the amount of which usually depends on which “side” of the market the user belongs to in this case:

Makers. The commission for them is low or zero and on some exchanges, they get a so-called rebate.

Market makers create limit orders to sell or buy, specifying the desired price of the operation. Thus, they form a book of orders, that is, they “make the market. Hence, there are more loyal conditions for them.
Takers. They create market orders without specifying a buy or sell price, thereby closing the existing limit orders.

continue reading here: https://altcoin.ng/what-is-spot-and-futures-trading-in-cryptocurrency-exchanges-examples-of-derivatives-and-spot-exchanges/

After reading from your blog, is futures advisable for scalping?

Yungbliss:


After reading from your blog, is futures advisable for scalping?

Yes, but the commissions and dealing spreads you pay can determine whether scalping futures will make sense for you